Corporate Income Tax – Help With The Tax Return for Small Businesses
Corporate income tax filings for your business in the UK is a difficult area to learn and comply with for a business small business owner.
It is not just checking boxes and inputting your sales and expense figures. There are specific electronic formats to be complied with, paperwork demands to be fulfilled and of course tax return deadlines to be met.
For small businesses which have started growing just recently and are submitting their tax returns for the first time, they do find it very challenging to deal with the procedure.
Nevertheless, this article will help you to get more familiarized with the corporate income tax procedure. It is a very good idea to get to know the basics of how filing your taxes works.
It is true that understanding the basics does not need any rocket science, and every excellent business leader performs better with the fundamental knowledge of marketing, sales, creativity and of course accounting and tax.
Below we describe some important matters which local business owners needs to think about prior to they file a tax return:
Appropriate Recording of Transactions
The initial thing a small company should do is to completely review the tax form and see exactly what the income tax return requires for you to complete it.
If you are too busy to review the whole income tax form, then the next best thing is to get a financial statement for your own business. This will list your total income, investments and expenses for the whole year.
Or some people like to see several years on one report so that they can compare how they have performed financially each year.
The top concerns with completing a tax filing are the tax calculations being too high, delaying the tax preparation and incurring penalty fees and how to create a correct record of your accounts.
The most effective method to ensure that your accounts are appropriate is to follow the system of the latest bookkeeping software.
There are many audit and tax software applications available to you, which will help you manage your small business on a day-to-day level.
In addition, recording of sales, invoices and and various other complicated transactions is done properly with software. Specifying the right types of income as well as expenses for you.
This is much easier than using a spreadsheet or Excel This is because it will be easier for you to manage your tax preparation when submitting your returns at the end of the year.
There is a series of other bookkeeping packages which will not only make arranging your financial statements easier, but it also simplify your business’s tax matters.
Being the owner of a local business, you need to be thinking of ideas on how to lower business expenses to a minimal level. This is if you want to focus on increasing the profitability of your business and pay yourself more.
Working with qualified tax professionals can quickly become a fun and easy process by using accountancy software programs. While employing many different bookkeepers can be avoided completely by using tax software.
Tax software program primarily aids you automatically calculate your tax return amount after you deduct expenses, which will certainly alleviate the burden of tax prep work.
Moreover, utilizing this will certainly make the estimation of asset valuations and depreciation much easier for small businesses. It will certainly lower the chances of mistake to and mathematical errors to assist you abide by the tax authority regulations.
Corporate Tax Return Deadlines
Be aware that the corporate tax return deadline is different for each business, it is not the same for everyone.
It is usually based around the last day of the month that the registered your business.
This is a good way to plan your deadline.
For example, if you registered your business in February 2018, then your company year end will be February 2019.
This is when you should start preparing your company accounts and tax return.
This gives you a safe buffer time to get everything ready and stay far away from actually missing any HMRC or Companies House deadlines.
Yes, there are some people who leave it right until the very last notification date – but we strongly advise against that.
How can you run your business in peace and enjoy your prosperity if late notices are swamping you down?
Business owners should bear in mind that preparing both, your tax declarations accurately and filing them on a timely basis, go side by side.
Larger businesses typically employ tax experts or outsource this nature of work (preparing as well as declaring of tax returns) to online tax services providing such relevant assistance.
This will help you if you do not want the stress and difficulty in dealing with tax issues, as well as, the corporate income tax filing deadlines. Solo business owners on the other hand, must be prepared with their accounts as well as tax returns, keeping in view the last date for filing the tax returns to avoid huge late penalties.
If you would like to speak with us about your small business send a message on the Live Chat now and a member of our team will be happy to assist you. Or complete the form below for a free callback today.
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